Bhushan Steel: Iron Ore & Ore Pellet Sourcing Up 9% in Dec’18

Bhushan Steel – a major integrated steel maker with a capacity of 5.6 MnT has recorded iron ore and pellet sourcing at 0.42 MnT in Dec’18. The sourcing increased 9% on monthly basis as against 0.39 MnT in Nov’18.

The total iron ore procurement in Dec’18 increased 11% on monthly basis to 0.42 MnT as against 0.38 MnT in Nov’18.

Iron ore procurement from OMC down 16% M-o-M

State owned miner- OMC stood largest supplier of iron ore to the Bhushan Steel at 0.13 MnT in Dec’18, down 16% M-o-M as against 0.15 MnT in Nov’18.

Tata Steel supplied 0.09 MnT of iron ore in Dec’18, almost in line with Nov’18 supplies.
Indrani Patnaik, AMTC and Essel mining supplies to Bhushan Steel increased for the month at 0.09, 0.04 MnT and 0.02 MnT respectively.

Sourcing from Serajuddin and RP Sao dropped down on monthly basis to 0.04 MnT and 0.02 MnT respectively.

Bhushan Steel pellet procurement dropped to nil in Dec’18

Bhushan Steel pellet procurement in Dec’18 recorded nil against 2 rakes (7,700 MT) in Nov’18.

Bhushan Steel Iron Ore Sourcing

Source: SteelMint Research
Quantity in MT
Provisional Data

Bhushan Steel was one of the companies underwent Bankruptcy proceedings. In May’18, NCLT (National Company Law Tribunal) finally gave its approval to Tata Steel’s resolution plan of acquiring debt-ridden Bhushan Steel under the Insolvency and Bankruptcy Code (IBC). Bhushan Steel has received necessary approval to Change its name to Tata Steel BSL following its takeover by Tata Steel. Also, Tata steel targets 4 MnT per yr production capacity at Bhushan Steel by Mar’19.

Tata steel is planning to expand Bhushan steel capacity from 5.6 MnT to 8.3 MnT. Also, it is planning to enhance production at its captive iron ore mines around Jamshedpur and Kalinganagar which will help in raw material availability to ramp up capacity at Bhushan Steel